Burnett Taps Outsider--former Nike Exec--for Creative Help

Leo Burnett Co. is bringing in former Nike Inc. global advertising director Joe McCarthy to be a creative consultant as part of the major agency restructuring that was announced Tuesday.

The world's 12th-largest ad agency almost never taps outsiders, in any capacity. To bring an outside consultant to the creative department, where advertising campaigns are dreamed up, developed and executed, shatters Burnett's traditional approach to its business.

At least, that was Burnett's reputation before Tuesday, when it laid the groundwork for a completely new organization within its giant domestic unit. Agency Chairman Richard Fizdale, at the staff meeting held in the Chicago Theatre to accommodate the agency's 2,100 staffers, said Burnett's traditional structure would give way to a more decentralized operation of in-house mini agencies. Fizdale also introduced McCarthy to the staff during the meeting.

In his first interview to outline details of the reorganization, Fizdale said Wednesday that McCarthy will work with Burnett worldwide creative director Michael Conrad and Leo Burnett U.S.A. creative chief Cheryl Berman two days a week.

But Fizdale stressed that no changes are being made at that top levels of his creative department. In discussing McCarthy's role, Fizdale said that the former Nike executive is "going to be a progressive voice on the behalf of great creative."

Fizdale said that he was impressed with the Nike advertising work McCarthy had overseen during his two years at the helm. Indeed, Nike, with its in-your-face "Just Do It" campaigns, is held up as one of the most creatively advertised brands in the world.

McCarthy is also no stranger to Chicago. Under his watch at Nike, he hired Chicago ad agency the Leap Partnership to do work for the company's NikeTown stores.

Fizdale said the executive, who left Nike last year, got in touch with Burnett through a headhunter earlier this year.

"Because of the work he had done with Nike, I said I'd like to meet the guy," Fizdale said.

He said he was impressed with McCarthy, and the two men earlier this summer worked out the consulting arrangement. Fizdale said he saw no need to bring in a full-time executive to jump-start things at Burnett.

"I feel good about the current creative quality, not great," Fizdale said. "It will get a whole heck of a lot better in the coming months."

About the reorganization, Fizdale said that two mini agencies would be set up in November, but wouldn't say who would run them or what clients would be included. In total, there will be "no more than 10" mini agencies set up within the agency according to "broad-based categories," as opposed to brands or clients.

"Each one is free to establish their own work processes," Fizdale said. "If they create bureaucracy, shame on them."

He also said it was up to each mini agency to determine whether to continue some form of the agency's long-standing creative review committee, which some insiders have said has stifled creative ideas in the past.

What is still not clear is how staffers will move up within the organization and whether each mini agency will have its own hierarchy and job titles.

Fizdale contends that the new structure will make the agency "more spontaneous," and able to respond more quickly to client needs.

"Right now, we are a siloed organization," he said. "That is about to change completely."

In other moves, Fizdale said, the agency will rename its media buying unit Starcom, as had been expected.